The Importance of Going Concern Opinion

Oct 13, 2025 by talynt.org 51 views

The Effect of Total Assets and Leverage on the Going Concern Opinion with the Probability of Bankruptcy as a Moderating Variable in a Delisting Company Listed on the Indonesia Stock Exchange (2008-2013)

Introduction

In the business world, company financial health is a crucial factor that influences investment decisions. One indicator that is often used to assess financial health is the Going Concern opinion, which refers to the assumption that companies can continue operations in the future. This study aims to explore the effect of total assets and leverage on the Going Concern opinion using the probability of bankruptcy as a moderating variable. The focus of this research is on companies deleted from the Indonesia Stock Exchange (IDX) between 2008 to 2013.

The Importance of Going Concern Opinion

The Going Concern opinion is a critical component of an auditor's report, as it provides an assessment of a company's ability to continue operations in the future. This opinion is based on the auditor's evaluation of the company's financial health, including its assets, liabilities, and cash flows. A Going Concern opinion can have significant implications for investors, creditors, and other stakeholders, as it can impact their decisions to invest in or lend to the company.

Research Methodology

This study involved ten companies deleted from the IDX during the specified period. The selection of samples was carried out using the purposive sampling method, which aims to ensure that the data analyzed is relevant and representative. The data used in this study came from financial statements published on the official IDX website (www.idx.co.id). To analyze data, a multiple linear regression model was used with the help of SPSS software version 19.0. The analysis method applied included the T test and the F test.

Research Results

The results of the study showed that total assets and leverage had no significant influence, both simultaneously and partially, on the Going Concern audit opinion in deleted companies. However, what is interesting is that the probability of bankruptcy can moderate the effect of total assets on the Going Concern opinion. Meanwhile, the probability of bankruptcy cannot moderate the effect of leverage on the opinion of going concern on deleted companies.

Additional Analysis and Explanation

This finding raises several important questions regarding the relationship between company financial health and auditor's perception. First, although total assets are usually considered as an indicator of financial stability, the results show that the number of assets does not necessarily reflect the company's ability to survive in the long run. This may be caused by external factors that affect the stability of the company, such as market conditions, risk management, and company strategy.

On the other hand, the lack of significant effects of leverage on the Going Concern opinion is also interesting to note. High leverage is often interpreted as a greater financial risk, but it does not always mean the company will experience bankruptcy. This shows the need for a deeper analysis of the company's capital structure and how the company manages its debt.

The probability of bankruptcy as a moderating variable shows that the higher the risk of bankruptcy, the greater the influence of total assets on the going concern opinion. This implies that the auditor not only considers total assets, but also the risks that the company may face in the future. Therefore, it is important for companies to not only focus on asset growth, but also manage risks effectively to maintain auditor confidence.

Conclusion

This study provides an important insight into the factors that affect the Going Concern opinion in the deleted company. Although total assets and leverage do not significantly affect auditor opinion, the probability of bankruptcy has an important role in assessing the company's financial health. Thus, companies need to adopt a more comprehensive approach in managing finances and risks to increase their opportunities to survive in the market. This finding also contributes to further research in the field of accounting and finance, especially in the context of companies listed on the Stock Exchange.

Implications of the Study

The findings of this study have several implications for companies, auditors, and regulators. Firstly, companies need to adopt a more comprehensive approach in managing finances and risks to increase their opportunities to survive in the market. This includes not only focusing on asset growth, but also managing risks effectively to maintain auditor confidence. Secondly, auditors need to consider the probability of bankruptcy as a moderating variable when assessing a company's financial health. This requires auditors to have a deeper understanding of the company's capital structure and how the company manages its debt.

Finally, regulators need to consider the findings of this study when developing policies and regulations related to company financial health and auditor's perception. This includes providing guidance on the importance of considering the probability of bankruptcy as a moderating variable when assessing a company's financial health.

Limitations of the Study

This study has several limitations that need to be considered. Firstly, the study only focused on companies deleted from the IDX between 2008 to 2013. This may limit the generalizability of the findings to other companies listed on the Stock Exchange. Secondly, the study only used financial statements published on the official IDX website as data. This may limit the scope of the study and the accuracy of the findings.

Future Research Directions

This study provides several avenues for future research. Firstly, researchers can extend the study to include other companies listed on the Stock Exchange. This can provide a more comprehensive understanding of the factors that affect the Going Concern opinion in deleted companies. Secondly, researchers can explore the relationship between company financial health and auditor's perception in other contexts, such as companies listed on other stock exchanges.

Finally, researchers can investigate the impact of the probability of bankruptcy on the Going Concern opinion in other industries, such as banking and finance. This can provide a more nuanced understanding of the factors that affect the Going Concern opinion in different contexts.

References

[List of references cited in the study]

Appendix

[Appendix containing additional data and analysis]

Note: The above article is a rewritten version of the original content, with proper formatting and optimization for search engines. The article is divided into sections, with headings and subheadings to make it easier to read and understand. The article also includes a conclusion, implications of the study, limitations of the study, and future research directions.
Frequently Asked Questions (FAQs) about the Effect of Total Assets and Leverage on the Going Concern Opinion with the Probability of Bankruptcy as a Moderating Variable in a Delisting Company Listed on the Indonesia Stock Exchange (2008-2013)

Q: What is the Going Concern opinion, and why is it important?

A: The Going Concern opinion is a critical component of an auditor's report, as it provides an assessment of a company's ability to continue operations in the future. This opinion is based on the auditor's evaluation of the company's financial health, including its assets, liabilities, and cash flows. A Going Concern opinion can have significant implications for investors, creditors, and other stakeholders, as it can impact their decisions to invest in or lend to the company.

Q: What is the purpose of this study?

A: The purpose of this study is to explore the effect of total assets and leverage on the Going Concern opinion using the probability of bankruptcy as a moderating variable. The focus of this research is on companies deleted from the Indonesia Stock Exchange (IDX) between 2008 to 2013.

Q: What are the key findings of this study?

A: The results of the study showed that total assets and leverage had no significant influence, both simultaneously and partially, on the Going Concern audit opinion in deleted companies. However, what is interesting is that the probability of bankruptcy can moderate the effect of total assets on the Going Concern opinion. Meanwhile, the probability of bankruptcy cannot moderate the effect of leverage on the opinion of going concern on deleted companies.

Q: What are the implications of this study for companies?

A: The findings of this study have several implications for companies. Firstly, companies need to adopt a more comprehensive approach in managing finances and risks to increase their opportunities to survive in the market. This includes not only focusing on asset growth, but also managing risks effectively to maintain auditor confidence.

Q: What are the implications of this study for auditors?

A: The findings of this study have several implications for auditors. Firstly, auditors need to consider the probability of bankruptcy as a moderating variable when assessing a company's financial health. This requires auditors to have a deeper understanding of the company's capital structure and how the company manages its debt.

Q: What are the implications of this study for regulators?

A: The findings of this study have several implications for regulators. Firstly, regulators need to consider the findings of this study when developing policies and regulations related to company financial health and auditor's perception. This includes providing guidance on the importance of considering the probability of bankruptcy as a moderating variable when assessing a company's financial health.

Q: What are the limitations of this study?

A: This study has several limitations that need to be considered. Firstly, the study only focused on companies deleted from the IDX between 2008 to 2013. This may limit the generalizability of the findings to other companies listed on the Stock Exchange. Secondly, the study only used financial statements published on the official IDX website as data. This may limit the scope of the study and the accuracy of the findings.

Q: What are the future research directions?

A: This study provides several avenues for future research. Firstly, researchers can extend the study to include other companies listed on the Stock Exchange. This can provide a more comprehensive understanding of the factors that affect the Going Concern opinion in deleted companies. Secondly, researchers can explore the relationship between company financial health and auditor's perception in other contexts, such as companies listed on other stock exchanges.

Q: What are the practical implications of this study?

A: The findings of this study have several practical implications. Firstly, companies need to adopt a more comprehensive approach in managing finances and risks to increase their opportunities to survive in the market. This includes not only focusing on asset growth, but also managing risks effectively to maintain auditor confidence. Secondly, auditors need to consider the probability of bankruptcy as a moderating variable when assessing a company's financial health. This requires auditors to have a deeper understanding of the company's capital structure and how the company manages its debt.

Q: What are the theoretical implications of this study?

A: The findings of this study have several theoretical implications. Firstly, the study provides a new perspective on the relationship between company financial health and auditor's perception. This study shows that the probability of bankruptcy can moderate the effect of total assets on the Going Concern opinion. Secondly, the study provides a new understanding of the factors that affect the Going Concern opinion in deleted companies.

Q: What are the policy implications of this study?

A: The findings of this study have several policy implications. Firstly, regulators need to consider the findings of this study when developing policies and regulations related to company financial health and auditor's perception. This includes providing guidance on the importance of considering the probability of bankruptcy as a moderating variable when assessing a company's financial health. Secondly, regulators need to consider the practical implications of this study when developing policies and regulations related to company financial health and auditor's perception.